The Internet of Things (IoT) market has grown steadily over the past decade, unlocking new possibilities across diverse industries, driven by innovations in enabling technologies, such as eSIM. However, until now, the long-awaited IoT revolution has been held back by factors such as the high cost and practicality of scaling.
However, recent technology developments and eSIM IoT specifications in remote SIM provisioning is now making mass IoT possible. The number of licensed IoT connections is forecast to reach 5.8 billion by 2030, according to a recent report by GSMA Intelligence. The report notes eSIMs and iSIMs will be key enablers of this growth, with those eSIM and iSIM form factors accounting for 71% of these total connections.
Early deployments in the automotive sector have shown what these new technologies can achieve in connected vehicles, providing enhanced security, enabling vehicles to connect to multiple operators, and allowing the selection of local operators’ connectivity at the vehicle’s country of destination. And there is consensus among operators that every industry will benefit from eSIMs and iSIMs, with GSMA Intelligence’s “Scaling eSIM in IoT markets” report revealing smart cities, health, agriculture, and supply chain are expected to see the highest demand.
Of all sectors, operators expect smart cities to drive the highest demand for eSIM-enabled solutions over the next year, with councils and their partners deploying more smart monitoring systems to track electricity usage, waste collection and management, air quality and traffic patterns. We are already seeing a growing range of smart city projects in the US and China using eSIM solutions for smart traffic management systems and parking solutions, as well as for smart street lighting.
Addressing enterprise pain points
What makes eSIMs and iSIMs game-changing for the prospect of mass IoT is the presence of Remote SIM Provisioning technology, which allows for the installation and management of network operator profiles over the air – removing the need to manually insert or replace a SIM. These developments represent a watershed moment for the industry, paving the way for the ongoing management of large fleets of connected devices as well as devices in remote or difficult to reach locations.
But the role of eSIM and iSIM in scaling IoT goes beyond the presence of remote SIM provisioning and, for eSIM and iSIM to reach critical mass, operators and vendors must help enterprises overcome key deployment challenges. These include the integration of IoT solutions with existing legacy technologies, security, and data privacy concerns, as well as implementation costs.
Aligning the industry behind common solutions
The adoption of global specifications will also help tackle some of the challenges around the integration and interoperability of different IoT solutions and platforms.
There are a number of proprietary solutions available in the market which help to address the need for local technology solutions that best fit short-term market requirements. However, proprietary solutions increase costs, integration time and leads to challenges around cooperation and the interoperability of different IoT solutions and platforms, in turn hindering uptake.
Adopting a single approach on global specifications is key to scaling eSIMs and iSIMs adoption, as is industry-wide alignment around enhanced specifications. The GSMA’s eSIM IoT specifications (‘SGP.31 eSIM IoT Requirement’, ‘SGP.32 eSIM IoT Technical’ and ‘SGP.33 eSIM IoT Test’) will help the industry overcome fragmentation and drive market acceptance worldwide. It will also ensure that smaller operators, equipment manufacturers and providers of IoT services continue to have equal access to market opportunities.
Achieving best-in-class security
For IoT deployments to proliferate, trust is essential, and this is being achieved by designing in strong operational functionality, security and robustness at the design specification level, before IoT devices are even manufactured.
Alongside this, certification, and compliance services, such as our GSMA Security Accreditation Scheme, eUICC Security Assurance Scheme and GSMA Compliance Process are needed to provide extra levels of trust and assurance for organisations when rolling out eSIM enabled device in the IoT programmes.
Scaling IoT is the ultimate objective
For companies manufacturing cellular IoT devices, it is important to understand that the choice between eSIM and iSIM is not an either/or scenario. Mass deployment of IoT is possible with eSIM and iSIM, and both are different form factors of the same technology that will coexist for years to meet the security and functional requirements of varied IoT use cases.
While eSIM and iSIM devices, connectivity and platforms are essential enablers, much of the value across the IoT value chain lies in IoT applications and services. As multi-country connectivity is built in during the manufacturing process and then delivered locally, IoT service providers can enhance their global propositions. Helping them navigate the learning curve and facilitate eSIM and iSIM implementation will be key to scalability. To this end, promoting examples of successful applications in IoT services, and the benefits they have helped to deliver, will be key.
Article by Gloria Trujillo and Yolanda Sanz, eSIM technical directors at the GSMA
Comment on this article via X: @IoTNow_
